An investment company has ($ 1.05) million of assets, ($ 50,000) of liabilities, and 10,000 shares outstanding.

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An investment company has $\$ 1.05$ million of assets, $\$ 50,000$ of liabilities, and 10,000 shares outstanding.

a. What is its NAV?

b. Suppose the fund pays off its liabilities while at the same time the value of its assets double. How many shares will a deposit of $\$ 5,000$ receive?

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Related Book For answer-question

Foundations Of Financial Markets And Institutions

ISBN: 9780136135319

4th Edition

Authors: Frank J Fabozzi, Franco G Modigliani, Frank J Jones

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Question Posted: Mar 02, 2024 05:01 AM

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An investment company has ($ 1.05) million of assets, ($ 50,000) of liabilities, and 10,000 shares outstanding.

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Foundations Of Financial Markets And Institutions

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